China's Foreign Exchange Reserves Fell Slightly in May on Rising US Dollar Index

Liao Shumin

DATE : Jun 08 2018/SOURCE : Yicai

China's Foreign Exchange Reserves Fell Slightly in May on Rising US Dollar Index

(Yicai Global) June 8 -- China's foreign exchange reserves declined slightly as of the end of May for the second consecutive month as the US dollar index rose, data from China's central bank showed.

Foreign exchange reserves in the world's second-largest economy stood at USD3.11063 trillion as of end-May, a decrease of USD14.229 billion, or 0.46 percent, compared to USD3.1248 trillion at the end of April, according to the official foreign exchange reserve assets data updated by the People's Bank of China yesterday.

"In May, China's foreign exchange market remained stable," an official at the State Administration of Foreign Exchange said in response to a question. "The US dollar index rose by 2.3 percent in the international financial market. The major non-US dollar currencies fell against the dollar, but the overall asset price rose. The combined effect of these factors led to a slight decline in the scale of foreign exchange reserves."

The central parity of the yuan against the dollar last month depreciated slightly from 6.3393 to 6.4144 at the end of May, while the US dollar index once hit 95.